Economy to grow 7.5 per cent, says Arun Jaitley

New Delhi: The government on Monday said revenue collection will fall short by Rs 50,000 crore but expressed confidence that economic growth will exceed 7.5 per cent, with fiscal deficit remaining within the budgeted target.

“Our macro-fundamentals remain strong. We are now better placed to handle unforeseen external shocks and to put India firmly on the path of economic recovery and inclusive prosperity,” finance secretary Ratan Watal said at a press conference along with other secretaries and the chief economic advisor.

One of the concerns is revenue collection, which according to revenue secretary Hasmukh Adhia will fall short of the budgetary target by 5-7 per cent, mainly because of subdued growth in direct taxes. The total tax revenues will be around Rs 14 lakh crore in the current FY, as against the budget estimate of Rs 14.5 lakh crore. About growth, economic affairs secretary Shaktikanta Das said there are indications that it will exceed 7.5 per cent this FY.